Dom Maklerski BOŚ recently published a new lineup of companies that should do better than the market. The novelties for May include as many as four companies: Lotos, Vercom, Asbis and Eurocash. 5 companies have disappeared from the list of long positions, i.e. more than half of the portfolio: KGHM, Pekao, Asseco SEE, Ten Square Games and LiveChat. “The composition of our portfolio is subject to moderate changes in the coming month. In particular, we are introducing Lotos, Vercom, Asbis and Eurocash to the long position list, while we are withdrawing KGHM, Pekao, Asseco SEE, Ten Square Games and LiveChat. We are not introducing any changes in the group of entities that may perform worse than the market, ”reads the report of DM BOŚ.
Earnings season for the first quarter
In addition to the above-mentioned companies, the list of top picks for the next month also includes: AB, Action, Asseco Poland, Arctic Paper, Azoty, Big Cheese Studio, DataWalk, Grodno, InterCars, JSW, LPP, LSI Software, Mirbud, Neuca, PCC Rokita , PKN, PlayWay, Selvita and Voxel. In turn, the companies BAH, Dino Polska and GTC should perform worse than the market. In the Q1 earnings season, analysts expect that quite a lot of companies may positively surprise, which will lead to a rebound after the recent sell-off in the broad market. “The companies that may surprise the market with positive results for Q1 this year include: Arctic Paper, Asbis, Azoty, CD Projekt, Eurocash, Grodno, Inter Cars, Lotos, LPP, PCC Rokita and Unimot. On the other hand, CCC and Toya may surprise the market in minus, ”the report reads. However, analysts reassure against excessive optimism due to periodic results and advise to look at the broader picture of our trading floor. “Overall we believe that the results at the aggregate level can lead to overly optimistic and false reassuring conclusions, while the ‘real’ picture is, in our view, less idyllic. These aggregate results are mainly influenced by the phenomenal results of large entities, which in the short term are either beneficiaries of interest rate increases (banks) or increases in commodity prices (fuel, mining and some chemical companies) ”- stated in the explanatory memorandum. “At the same time, the set of sectors increasing recurring profits is gradually shrinking and the median of the y / y growth rates of normalized earnings for the companies we cover are decreasing (unlike the” momentum “for collective earnings of all companies, which is accelerated by profit spikes in these large companies)” – the authors of the study believe.
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